Essentials of Health Care Marketing 2nd Ed. Eric Berkowitz

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Essentials of Health Care Marketing 2nd Ed.Eric
Berkowitz

• Chapter 12
• Advertising

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Chapter 12 Learning Objectives

1. Recognize the differences between the two basic
   forms of advertising product and institutional
2. Describe the steps followed when developing an
   advertising campaign
3. Know various ways to develop an advertising
   budget
4. Understand the value of alternative media

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Introduction

• Advertising
• Defined as directly paid form of nonpersonal
  presentation of goods, services, or ideas by an
  identified sponsor.
• Paid distinguished from publicity
• Nonpersonal distinguished from personal selling

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Learning Objective 1

• Common Classifications of Advertising
• Product Advertising focus on a particular
  product or service
• Institutional Advertising build up or enhance
  an organizations image

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Learning Objective 1

• Product Advertising
• Informational
• Used in introduction stage of new product
• Competitive
• Persuasive generate selective demand
• Reminder
• Most often used in maturity stage

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Learning Objective 1

• Institutional Advertising
• Used to build goodwill and to enhance the
  publics image of a particular organization
• Pioneering - Some introduce or announce openings
• Some compare programs
• Some advocate public policy position

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Learning Objective 2

• Developing the Ad Campaign
• Seven Steps
• Define the Target Audience
• Determine the Advertising Objectives
• Determine Budget
• Develop Message
• Specify Communication Program
• Evaluate Response

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 1 Define Target Audience
• Specified the group to whom the organization is
  trying to communicate
• Includes demographics, psychographics
• The more detailed this section, the easier
  subsequent sections will be.

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 2 Determine Advertising Objectives
• Facilitates consumers along hierarchy of effects
• Awareness
• Interest
• Evaluation
• Trial
• Adoption
• See Exhibit 12-1 page 322

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Learning Objectives 2, 3

• Developing the Ad Campaign - Steps
• 3 Determine the Budget
• Percentage of Sales
• Competitive Parity
• All You can Afford
• Objective and Task
• Most appropriate way, marketers dream budget

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 4 Develop the Message
• Appeals
• Rational functional attributes
• Emotional fear and humor
• Moral/social focus on causes or issues

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 4 Develop the Message
• Pretesting assessing advertising copy options
  before their general use
• Portfolio Tests testing alternative copy
• Jury Tests shown to panel of consumers, usually
  one ad is shown
• Theater tests immediate feedback
• Done often in healthcare in less expensive form

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 5 Specify the Communication Program
• Medium the form of communication selected
  (print, broadcast, direct mail, outdoor)
• Reach
• Frequency
• Vehicle Advertising alternative chosen within
  each medium
• Specific publications, stations

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 5 Specify the Communication Program
• Scheduling
• Seasonal
• Steady
• Flighting
• Concentration
• Pulsing

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 5 Specify the Communication Program
• Selecting the most cost-effective approach
• CPM cost per thousand print
• Cost per point based on rating points -
  television

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Learning Objective 2, 4

• Selecting the right medium
• Television
• Radio
• Newspaper
• Magazines
• Outdoor Advertising
• Direct Marketing
• Internet

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Learning Objective 2

• Developing the Ad Campaign - Steps
• 6 Evaluate the response
• Posttesting attitude tests
• Broadcast day-after recall
• Print aided or unaided recall
• Direct mail response rates

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Learning Objective 4

• Working with Ad Agencies
• Full-service agency - one-stop shopping
• Boutique agency limited range
• Creative services
• Media buying
• Broker other services
• Fees commission or fee-based structure

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Summary

• Advertising can take one of several forms it can
  be product-based or institution-based.
• The basis for an advertising campaign is the
  media plan, which is built on the definition of
  the target audience.
• Advertising objectives are based on the hierarchy
  of effects model.
• Advertising budgets are often derived on
  different bases. The most effective basis is an
  objective and task method.

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Summary continued

• The creation of effective advertising copy
  requires pretesting of the message with a sample
  similar to the target audience.
• In selecting the media for use in an advertising
  campaign, an organization often must make
  trade-offs between reach and frequency.
• There are several patterns by which advertising
  exposures can be scheduled steady, seasonal, or
  flighting.

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Summary continued

• Advertising media must be selected to minimize
  wasted coverage. Media choices can be compared
  on a cost-per-thousand or cost-per-point basis.
• Cable television has greatly reduced the cost of
  television advertising, while technological
  advances have affected both print and direct
  mail. Environmental constraints limit outdoor
  advertising.
• Advertising agencies differ in the structure,
  fee, and range of services provided. In recent
  years, there is a trend to a fee payment system.